Pareto advises Magnolia Bostad AB (publ) on their successful placement of a SEK 600 million four-year senior secured bond

Pareto Securities has advised Magnolia Bostad AB (“Magnolia Bostad” or “the Company”) on their successful placement of a four-year SEK 600 million senior secured bond. The proceeds from the transaction are to be used for refinancing of Magnolia Bostad’s existing corporate bond loans and to facilitate continued growth.

The bonds, maturing in April 2020, will bear a floating coupon of 3 months Stibor + 6.25% (paid quarterly). The bonds are intended to be listed on Nasdaq First North within 30 days of settlement with a subsequent transfer of listing to Nasdaq Stockholm no later than 1 year after settlement.

The transaction was successfully placed among predominantly Swedish investors with additional participation by other Nordic countries as well as continental Europe and the US. In aggregate, over 100 investors participated in the significantly oversubscribed issue.

”Since the issuance of the previous bonds, Magnolia Bostad has experienced a strong development with a rapidly growing project portfolio, strengthening of the organisation, and developing relationships with important external partners. The strong demand for a new Magnolia Bostad bond clearly reflects the investors trust in our business and how the Company has developed in terms of market position and stability. With the new financing in place, Magnolia Bostad is well prepared for becoming the leading developer of residential apartments in Sweden” says Fredrik Lidjan, CEO of Magnolia Bostad.  

Pareto Securities acted as issuing agent for the transaction. Pareto Securities, ABG Sundal Collier, and Swedbank acted as joint bookrunners for the transaction.

For more information please contact Mats Carlsson, CEO, at +46 8 402 52 86

Pareto Securities AB is part of the Pareto Securities group. Pareto Securities is an independent investment bank focused on the Nordic market. Pareto Securities offers Nordic and non-Nordic institutions, companies and private individuals investment services related to trading in stocks, derivatives and fixed income instruments, equity research and advisory services within corporate finance. The Pareto Securities group has a total of more than 400 employees, with its headquarters in Oslo and offices in Sweden (Stockholm and Malmö), Norway, Denmark, Finland, United Kingdom, France, USA, Canada, Singapore and Australia.